Dan Loeb is out of the red

Activist investor Daniel Loeb, the founder of Third Point LLC, is
out of the red.

Third Point is flat through October 31, according to a
performance update seen by Business Insider. During October,
Third Point gained 4.7%.

The S&P 500 is up 2.7% year-to-date after rising 8.4% in
October.

Loeb had gone into August up 5.7% for the year. Like many hedge
funds, Third Point faltered during that period of
volatility. The fund also suffered losses in September.

In the fund's third-quarter investor letter dated October 30,
Loeb wrote that his fund was able to move back into positive
territory.

From the Q3 letter:

Despite a difficult quarter for our portfolio, we are optimistic
about what we own: a mostly U.S.-centric, concentrated portfolio
of event-driven names and structured credit. We understand the
macro and market challenges to the overall investment
environment. We do not see indicators of a looming U.S. recession
and so, while volatility is likely here to stay and multiples may
be capped, we are seeing some compelling value opportunities in
stocks. The environment for short selling is also attractive and
we have more single short names than long positions in our book
today. We have reduced our net exposure by nearly a third through
sales and new shorts over the past few months while maintaining
significant positions in our highest conviction, event-rich
names. The conviction to keep and add to our core healthcare
names during the selloff enabled us to re-establish ourselves on
positive footing this month.

For the most part, 2015 has been an underwhelming year for hedge
funds, particularly for the activists.

On average, the activists hedge funds are down 4.01% this year,
according to data from Hedge Fund Research. A number of the
big names, including Bill Ackman (Pershing Square), David Einhorn
(Greenlight Capital), Larry Robbins (Glenview Capital), and
others, are deep in the red.